Fund of the week: Buying tomorrow's giants today

Over the past five years, this smaller-companies fund has made an 86% return by buying small companies with predictable growth, and then holding on to them.

Harry Nimmo is no novice. He's run Standard Life Investments UK Smaller Companies Trust (LSE: SLS) since its launch in 1997. He joined after graduating from the University of Edinburgh and has worked for the company for 25 years.

And he makes that experience count. Over the past five years he has produced an 86% return compared to a sector average of 25%. That makes his fund the top performer in the IMA UK Smaller Companies sector. Nimmo puts his success down to his ability to "buy tomorrow's large companies today", he tells Investment Week. He looks for predictable growth in a proven business, then sticks with his chosen firms. "We don't turn over the portfolio very often and tend to hold stocks on average for about four years."

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